IAG Eyes $25bn in Premiums and 11 Million Customers by 2030

IAG sets its sights on 11 million customers and $25bn in premiums by 2030

At its 2026 Investor Day held in Sydney on 12 May 2026, Insurance Australia Group (ASX: IAG) outlined a refreshed long-term strategy under the Ambition 2030 banner. Management presented headline targets of 11 million+ customers, $25 billion+ in gross written premium (GWP), 15%+ return on equity (ROE), and high-single-digit earnings per share (EPS) growth per annum.

These targets assume completion of the acquisition of RAC Insurance, which remains subject to regulatory approvals and customary closing conditions.

Nick Hawkins, Managing Director and Chief Executive Officer

“IAG is now a stronger, more resilient business. Over the past five years, we have delivered on our targets and laid solid foundations for our new Ambition 2030 goals.”

Five years of delivery set the platform for what comes next

IAG enters Ambition 2030 having successfully delivered on the strategic targets it set in FY21. The scorecard below illustrates the scale of that delivery across key financial and operational metrics.

Note: FY25 ROE and EPS figures are adjusted to remove the benefit of after-tax impact of net corporate expense and underlying profit impacts. The FY30 GWP/share target of ~$11 assumes a 2.5% reduction in share count attributable to capital management.

The presentation also highlighted several structural enablers that underpinned the prior cycle’s delivery:

• Strategic alliances with RACQ and RAC have the potential to deliver up to $3bn in GWP and double-digit EPS accretion, increasing retail exposure.
• Over $750m returned to shareholders via on-market share buybacks over the past four years.
• Retail technology platform substantially complete, enabling scalable growth going forward.
• Pioneering long-term reinsurance protection structure reducing earnings volatility and capital intensity.

The four strategic priorities underpinning Ambition 2030

Management outlined four strategic pillars that will drive execution of the refreshed strategy:

1. Customer Obsession — deepening relationships across owned and partner brands to serve more customers through their preferred channels.
2. Insurance Excellence — maintaining disciplined underwriting, sophisticated pricing and strong reinsurance protection to deliver sustainable margins.
3. Future Fit Operations — simplifying platforms and embedding AI across the value chain to lower unit costs and improve speed.
4. Exceptional People — building a high-performing, engaged workforce to deliver on the group’s purpose.

Technology and AI — the engine room of the strategy

In its 2026 Investor Day presentation, management highlighted that IAG’s multi-year platform simplification is nearing completion, positioning the group to capitalise on agentic AI at scale.

Key retail platform milestones highlighted in the presentation include:

• Pricing platforms reduced from 8 to 1
• Claims platforms reduced from 16 to 1
• 6 million+ policies migrated to strategic platforms
• 27 brands migrated in three years
• Digital NPS of 57 in both Australia and New Zealand; digital channel purchasing at 63% (up +15% in 24 months)

On AI deployment, management outlined progress that goes well beyond pilots:

• 0 to 92 GenAI deployments described as production use cases, not pilots
• 600+ certified AI activators across the business
• 60% of the workforce now has AI tools deployed
• Intermediated motor claims 100% AI triaged
• WFI SME quotes reduced from 24 hours to 15 minutes (96x faster)
• Test design accelerated 10x faster, from 4 weeks to 4 days

Nick Hawkins, Managing Director and Chief Executive Officer

“Our Ambition 2030 will be enabled by our modern technology platform. We are nearing the final stages of our multi-year platform simplification journey, which provides us with the ability to rapidly adapt to changing consumer preferences in a world of agentic AI.”

What does general insurance market growth mean for IAG investors?

Gross written premium is the total value of premiums an insurer collects before reinsurance costs are deducted. It serves as the primary revenue measure for general insurers, making industry-level GWP growth a direct structural tailwind for a group of IAG’s scale.

According to data from APRA, ICNZ, and Deloitte Access Economics forecasts as cited in the presentation, the Australian general insurance market grew at a 10% CAGR from 2020 to 2025 and is forecast to grow at approximately ~6% CAGR through to 2030, with the market estimated to reach approximately ~$105bn. New Zealand’s general insurance market grew at 8% CAGR over the same period, with ~5% growth forecast to 2030 and a market estimate of approximately ~$13bn.

IAG’s combination of scale, leading brand reach, comprehensive reinsurance structure, and AI capability positions the group to participate in these tailwinds. The company’s own mid-single-digit GWP growth target is set against this broader market backdrop, implying a measured and disciplined approach to capturing share rather than an aggressive expansion posture.

Financial model built for low volatility and capital discipline

CFO William McDonnell presented IAG’s financial model at the Investor Day, with a focus on earnings resilience and capital efficiency. Key mechanics of the model include:

• 35% whole-of-account quota share: Partners (Berkshire Hathaway, Munich Re, Swiss Re, and Hannover Re) receive 35% of all IAG premiums and contribute 35% of gross claims and expenses.
• The arrangement delivers approximately ~5% margin uplift on IAG’s retained net premium, via a fixed commission payment (2%+), profit commission expectation of 1–2%, and savings on other reinsurance costs (~1%).
• Over $1bn reduction in regulatory capital requirement attributable to the quota share structure.
• Five-year perils volatility cover (to FY29) with Berkshire Hathaway and Canada Life Re, providing approximately ~$1bn of additional protection per year (approximately ~$4bn over the term), with a modelled average benefit of approximately ~$100m or ~1% to the reported margin.
• CET1 target of 0.9 to 1.1 times the APRA Prescribed Capital Amount (PCA), with management comfortable operating towards the lower end given earnings strength and low volatility.
• Dividend payout target of 60%–80%.

The reported through-the-cycle insurance margin target is at least 15%, with underlying margin expected in the 14%–15% range and potential profit commission upside of approximately ~100–200bps.

On costs, the administration ratio ex-levies is tracking to approximately ~11.6% in FY26 and is targeted below 11% in FY27. This trajectory is supported by approximately ~$350m in claims benefits and approximately ~$130m in expense savings from AI and technology investments.

Retail and intermediated — segment targets for 2030

Retail Insurance Australia (RIA) — 2030 targets:

• Serve approximately ~8 million customers and grow to approximately ~$15bn GWP (both subject to completion of the RAC Insurance acquisition)
• Deliver consistent ~15%+ insurance margins
• Realise >$500m in run-rate value through AI-led claims transformation
• Achieve +60 tNPS satisfaction

Intermediated Insurance Australia (IIA) — 2030 targets:

• 13%+ insurance margin by 2030
• Admin ratio target of 10% ex-levies
• 100% straight-through processing (STP) on SME, Agri and Personal Lines, excluding cases requiring a key decision point or triggered by a drop-out
• Number 1 NPS across WFI, CGU and Claims
• 90%+ automated controls

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